Road to nowhere

16 June 2017 Transportation is not the only area that needs increased federal support
This week, public transit executives have called on the Trump administration and Congress to reject the phase-out of the Capital Improvement Grant (CIG). 

The American Public Transportation Association (APTA) said the administration’s Budget proposal to cut the CIG program would put public transit projects and thousands of jobs at risk.  

In addition the association, which has 1,500 members, called on Congress to include increased investments in public transportation as part of any new infrastructure initiative. Richard White, APTA acting president and chief executive officer, said: “Now it is time for the federal government to step up and match the local and state funds for transit projects that have been approved by the voters.” 

He added: “It takes investment from all levels of government and the private sector to improve our public transit systems and enhance the communities they serve.” 

There is no doubt that transportation infrastructure is in dire need of improvement in the US and is clearly an area where federal support will come in handy. 

So, you can understand the point made by transportation leaders. In many ways this simply reinforces the need for Trump to provide real details of how exactly he will deliver his big talk on infrastructure.  

After all, transportation has been a key area to which he has paid lip service so far. But instead, in this case, we have seen a move that many fear will actually curb federal support, not boost it. 

From a market perspective, transportation is by far the most mature of P3 sectors in the US, so if the support is not immediately forthcoming for an area where the president has been vocal in his support, it may mean even slower progress for other sectors. 

Areas such as social, water and broadband for example are just as in need of federal support, so backing from the top in those sectors will be even more necessary as the P3 pipeline and framework is less robust. As has been said before, we need to see a real infrastructure bill with tangible information or questions will continue to be asked. 


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This page was last updated on:
16 June 2017.


Road to nowhere

Transportation is not the only area that needs increased federal support


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